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The Company Alpha produces one product, a mobile phone called T54. Alpha sold 100.000 units of T54 during last year. The manufacturing capacity is 250.000
The Company Alpha produces one product, a mobile phone called T54. Alpha sold 100.000 units of T54 during last year. The manufacturing capacity is 250.000 units Consider the following Income Statement: Revenues 1.210.000 Manufacturing Variable Costs 310.000 Non-Manufacturing Variable Costs 100.000 Contribution Margin 800.000 Manufacturing Fixed Costs 90.000 Non-Manufacturing Fixed Costs 200.000 Operating Income 510.000 Income Taxes (40%) 204.000 Net Income 306.000 a) If the sales volume is estimated to be 120.000 units next year and the cost behavior patterns temain the same next year, how much net income does Alpha expect to earn next year? b) Assume Alpha's estimates the selling price per unit will decline 6% next year, variable costs will increase by 2 per unit and total fixed costs will increase by 10.000. Calculate how many units must be sold next year to earn a total net income of 390.000 Please provide the full calculations
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